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S&P Equity Research director Tuna Amobi on the companies in the media sector that are a “buy” and which to avoid.
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Indian now we've got a media analyst who has a buy rating on all of the media companies he follows except one.
So he loves almost everything except one name -- -- -- -- the equity research director at Standard and -- are right.
Let's string people along -- -- and we'll get to the one in a minute that you say should be an absolute sell but first.
Let's get to the ones that you like right now and to mean net flicks I mean you're calling Netflix -- -- this was up 304.
Dollar stock over the past year.
It's been cut out from underneath -- just been a terrible performer at the moment what makes you say this is a stock should buy right now well I think.
Allow investors still view -- -- perhaps as broken growth story however we think there's plenty of opportunities in international and domestic streaming growth left on the horizon if you can live beyond the fact that it might incur a loss this year.
As expanding to out Canada and Latin America and then I think you Begin to understand.
The immense upside.
In the shares that's -- consumers continue to transition from.
You know fiscal dvds and streaming growth consumption.
But as they got distracted by their problems in came Blockbuster.
And of course not to mention -- -- Verizon all of these names saying we want in two.
Helped boost to say that one of those won't emerges a real winner.
Well I think.
If you look at the overall.
Landscape right now I think that -- there's a couple of trends that we see Tom you know I think it is sensitive -- storm right now of consumers gravitating to.
You know new media outlets.
Digital consumption so -- it's Netflix or even the pure content provider as I'm sure we'll get to that shortly.
I'm we think it's a really great time to be -- branded entertainment content provider or online distributor and -- landscape.
Well let's get to that because we don't have too much -- Disney Disney you like you also have a real buy rating on this one even though it's doubled as well with the John Carter.
Fiasco which is costing them a pretty penny.
While this is one of those companies we think is gonna -- -- from you know the cyclical.
Improvement in the macroeconomic picture.
The films today is just a relatives small portion of the you know the overall business and what trying to get investors to look beyond.
You know the one film the issue of that some under a lot of studios inevitably face her.
In a case of Disney theme parks in the media networks -- channel checks continue to show that goes.
Trends continue to remain healthy which explains our strong buy recommendation I would spend them to report another strong.
Quarter and you're looking for 52 dollar price target they've got nine dollars to go.
Let's talk about a company that made an announcement and they they cannot seem to get a break.
And that's DreamWorks Animation what I say announcement I mean they are going to start producing movies in China.
And that to me it might be a real opportunity I assume you see at the same way.
That's exactly right think of if Sam -- -- -- company China which DreamWorks Animation is gonna and it's a joint venture with some Chinese partners.
Many bears mentioning that over in in fifteen -- so you have covered the media sector are you he had the media executives -- on how difficult China's been too.
You know penetrate so here comes a relatively small independent studio and mouse and this mega deal.
Which some Chinese -- -- -- and it is.
And that's gotta be you know the -- -- a lot of you know because Hollywood studio so to speak but beyond that within China is gradually -- in some -- restrictions on that should bode well.
-- -- -- -- -- -- -- -- -- -- -- It's Cablevision.
I think -- the story is really playing out right now no the tension between content and distribution.
As I indicated earlier.
It's really not a great time to be a pure distribution -- like cable vision.
Which I might add recently spun off AMC networks which now trades independently.
And MC networks has gone on to -- got better things.
You know producing shows you know we should make mad men and etc.
but Cablevision I think there's a perception on -- -- That the competition from five it was and are there pay TV entrant is gonna be presently -- subscriber growth so that's the -- -- risk factor there.
Well I'll tell you it's interesting to watch it's interesting to hear the opinions and again a lot can happen -- year -- of -- thank you very much.
My pleasure -- S&P equity research direct.
